Antitrust Holdup Source, Cross-National Institutional Variation, and Corporate Political Strategy Implications for Domestic Mergers in a Global Context
WZB, Markets and Political Economy Working Paper No. SP II 2004-09
59 Pages Posted: 25 Jun 2004
Date Written: June 2004
Abstract
Managers are increasingly uncertain over the source (home-nation or foreign-nation) of antitrust holdup for domestic mergers with significant international implications. I propose a conceptual framework that predicts the source of antitrust holdup for domestic mergers. Under idealized institutional assumptions, I find an industry's global competitiveness to be the primary driver behind holdup source: a contention supported by empirical tests based on the merger policies of 27 antitrust jurisdictions over the 1992-2000 period. I also relax the idealized institutional conditions to yield more precise propositions tailored to the cross-national environment for antitrust policy. Finally, I generate prescriptive propositions that yield implications for effective political strategies.
Keywords: Corporate Political Strategy, Non-Market Strategy, Merger Reviews, Antitrust
JEL Classification: L40, M20, F14
Suggested Citation: Suggested Citation
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